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Kuwait Financial Centre “Markaz” GCC Daily Fixed Income Report – 17 April 2012 News Update Select GCC Bond and Sukuk Prices (16 April 2012) Qatar Treasury Bonds Top QAR 14 Bn- Governor of Qatar Central Bank Type Name Maturity Size (Mn) Rating Sheikh Abdullah bin Saud Al Thani, said the value of the government Bond State of Qatar 9-Apr-14 2,000 AA/Aa2 treasury bonds topped QAR14bn ($3.943bn) by the end of March, 2012. Bond State of Qatar 9-Apr-19 1,000 AA/Aa2 Bond Emirate of Abu Dhabi 8-Apr-14 1,500 AA/Aa2 "The QCB has discussed with the government the possibility of issuing new Bond Emirate of Abu Dhabi 8-Apr-19 1,500 AA/Aa2 bonds with different maturity periods in order to enhance the capital Bond Mubadala Development Co. 6-May-14 1,250 Aa3/Aa2 market," Sheikh Abdullah said. "The government started issuing treasury Bond Mubadala Development Co. 6-May-19 500 Aa3/Aa2 bonds in 2008 and listed on the Qatari bourse for trade in late December, Bond Qatar Telecom 10-Jun-14 900 A/A2 2011" said Sheikh Abdullah. Bond Qatar Telecom 10-Jun-19 600 A/A2 Nakheel FY Profit Soars 33%; 3rd Tranche Of Sukuk By JuneReal-estate developer Nakheel posted a 33% rise in 2011 net profit, as it handed over properties and avoided any impairment charges, and said it expects to issue the third tranche of its AED4.8bn ($1.31bn) sukuk to trade creditors by June. Net profit last year came to about AED1.3bn, up from around AED1bn in 2010. "The increase in profit in full year 2011 is primarily due to the fact that as against impairment loss of AED2.7bn recorded in full year 2010, there was no impairment loss in full year 2011." Tamweel May Tap Debt Market Again This Year, Acting CEO SaysTamweel may consider tapping the debt market again this year after the UAE mortgage lender raised $300mn from the sale of Islamic bonds in January. “We may potentially go back to the market this year for either a sukuk or securitization,” acting CEO Varun Sood said. “It would be a similar transaction to what we did earlier this year.” The mortgage company, controlled by Dubai Islamic Bank, sold $300mn in sukuk in January, its first offering since 2008. Dubai World To Invest AED 13.6 Bn- Most of funds will cover projects in Mideast, Africa and Europe Dubai World, one of the largest ports companies in the world, is planning to invest AED13.6bn in new projects in the next three years as part of an ongoing expansion strategy worldwide, its chairman said. The company already invested nearly AED1.7bn in 2011, mainly in its Jetway project in London. "We have plans to invest nearly AED13.7bn until 2014...these will cover 10 large expansion projects targeting promising markets," he said. Emaar Yield Premium To Aldar Drops On Malls, Hotels- The premium investors demand to hold Emaar Properties bonds over debt of Abu Dhabi‟s Aldar Properties tumbled to the lowest in more than six months as the Dubai developer profits from a retail and tourism upturn. The spread between Emaar‟s 7.5% convertible dollar-denominated bond and Aldar‟s 10.75% dollar notes narrowed 344bps this year to 24 on April 4, the lowest since Sept. 22. The spread between debt of the two biggest UAE real-estate companies by market value was 50bps yesterday, down from 367bps basis points on Dec. 30.

Sukuk Aldar Properties Sukuk DP World Ltd

27-May-14 2-Jul-17

1,500 1,500

Bid Price 107.057 119.405 108.625 122.750 107.216 122.069 109.210 122.614 BB-/B1 109.569 BBB-/Baa3 105.172

Ask Price 107.561 120.046 109.375 123.500 107.745 122.964 109.885 123.451 110.144 105.801

Bid Yield 1.500% 3.399% 1.057% 3.094% 2.124% 3.999% 2.074% 4.177% 5.842% 5.103%

Ask Yield 1.251% 3.306% 0.692% 2.988% 1.871% 3.869% 1.769% 4.057% 5.565% 4.968%

HSBC/NASDAQ Dubai GCC Sukuk & Bonds US Dollar Index Sukuk 13-April-12 31-December-11 Conventional 13-April-12 31-December-11

Total Return 136.74 133.00 146.41 141.59

3.83 3.59

3.93 4.31

276.60 312.20

Clean Price 4.31 97.10 3.99 95.79

5.30 5.26

5.81 5.07

287.15 322.59

7.28 7.31

Duration Yield

Spread

Life

Coupon Total Market Cap

100.45 98.53

4.91 5.06

179.73 142.39

5.47 5.63

935.13 808.83

Interbank Rates (%) SAIBOR KIBOR BHIBOR QATAR AEIBOR LIBOR EURIBOR

1-Month 17/04/12 31/12/11 0.5863 0.5188 0.5625 0.5625 0.8500 0.8500 0.8900 0.4300 0.9750 0.9750 0.2398 0.2953 0.3561 0.9643

U.S. Treasuries (16 April 2012) 3-Month 2-Year 3-Year 5-Year 10-Year 30-Year

Coupon 0.000 0.250 0.375 1.000 2.000 3.125

Equity Market Snapshot Abu Dhabi SE Bahrain SE Dubai SE Kuwait SE Muscat SE Qatar SE Saudi SE

Last Close 2,512.27 1,138.09 1,675.15 6,217.30 6,003.47 8,738.89 7,348.33

3-Month 17/04/12 31/12/11 0.8900 0.7800 0.8125 0.8125 1.2700 1.2583 1.3300 1.1000 1.5363 1.5200 0.4657 0.5810 0.6568 1.2921

Price 0.070 99.969 99.930 100.773 100.219 100.047

Price Change -0.008 0.008 0.012 0.027 0.055 0.172

1 Day Change -0.5% 0.1% -1.5% -0.3% -0.9% -0.1% -1.0%

YTD Change 4.1% -0.4% 21.9% 6.6% 4.5% -0.6% 13.4%

17/04/12 1.0950 1.3125 1.9667 2.3800 1.9863 1.0502 1.3421

1-Year

31/12/11 1.0400 1.3125 1.9583 2.1500 1.9725 1.1281 1.9134

Current Yield (%) Yield Change (%) 0.076 -3.227 0.268 -0.735 0.400 -0.647 0.841 -0.580 1.976 -0.266 3.124 -0.233

Crude Oil Brent WTI OPEC

Price 118.22 102.87 119.10

1 Day ∆ -0.39% -0.06% 0.32%

Gold Spot $/OZ

Price 1,648.55

1 Day ∆ -0.18%

GCC Sovereign Ratings Moody’s S&P Abu Aa2 AA Dhabi

Fitch

Bahrain Baa1 BBB

BBB

Kuwait Aa2

AA

AA NR

AA

Oman

A1

A

Qatar

Aa2

AA

NR

KSA

Aa3 AA-

AA-

UAE

Aa2

NR

NR

GCC Currencies Currency

USD 1-Day ∆

KWD

0.2786

SAR

3.7501 (0.0003)

BHD

0.3770

0.0000

QAR

3.6410

0.0001

OMR

0.3850

0.0000

AED

3.6730

0.0000

EUR/USD 1.3108

0.0016

JPY

80.4100 (0.0600)

USD 5-Year CDS Abu Dhabi Dubai

0.0005

119.930

YTD Change -5.9%

365.475 --17.9%

Bahrain 361.525

-5.7%

Qatar

123.605

-3.0%

Saudi

120.500

-6.3%

Egypt

622.785

-2.6%

Lebanon 462.500

-2.0%

Turkey

241.450

-17.1%

China

114.860

-22.0%

France

190.340

-18.4%

Germany 76.915

-29.0%

Japan

103.000

-28.1%

UK

65.520

-32.8%

US

30.060

-38.6%

This report has been prepared and issued by Kuwait Financial Centre S.A.K (Markaz) , which is regulated by the Capital Markets Authority and the Central Bank of Kuwait. The report is owned by Markaz and is privileged and proprietary and is subject to copyrights. Sale of any copies of this report is strictly prohibited. This report cannot be quoted without the prior written consent of Markaz. Any user after obtaining Markaz permission to use this report must clearly mention the source as “Markaz “ .This Report is intended to be circulated for general information only and should not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy in any jurisdiction. The information and statistical data herein have been obtained from sources we believe to be reliable but in no way are warranted by us as to its accuracy or completeness. Markaz has no obligation to update, modify or amend this report.For further information, please contact „Markaz‟ at P.O. Box 23444, Safat 13095, Kuwait. Tel: 00965 1804 800 Fax: 00965 2245 0647 Email: research@markaz.com

A number of sources which include Bloomberg, Zawya, and daily newspapers were utilized in the creation of this report.

DFIU 17042012  

DFIU 17042012

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